Breakout Trend Investing

Hello you very wonderful and intelligent individuals that make up this forum. I hope you have had an excellent start to 2025 and that everything is going well for you.

I was kindly reviewing alot of micro cap stocks and before a large breakout, there appears to be various candlesticks that i am not familiar with. I have kindly enclosed an image to this post and these can be seen in a light blue square. They appear to be a large red line vertical with a red line through it going horizontal which makes it look like a cross symbol. Can i kindly please ask what these candlesticks mean and do they indicate a reversal please? If anyone kindly had any thoughts on this i would be forever grateful and thankful it would mean the world to me.

Thank you ever so much for any support you can give. Sending you lots of good wishes and i truly hope you have a wonderful year and a happy and amazing life. Enjoy the rest of your weekend. With my every best wishes to you.

A mix of long-legged, dragonfly, and gravestone dojis. Reading the patterns can be very tricky, and I won’t pretend to be an expert… Take a look e.g. Ross Cameron’s videos on technical analysis on youtube

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They’re Doji candles / Dojis.

When they’re small in height they usually mean a slow in momentum.

E.g. you have green candles to the upside, maybe 3 - 5 in a row, then you get a Doji, that means look out for a potential pause (price moves sideways) or a reversal (if price begins to pull back after the Doji forms).

When candles are smaller and then you get a taller Doji - I’d call them wider - that means the range that price traveled during that candle’s duration was wider than normal, but price closed relatively flat to where they opened.

So in other words, even though price rallies a lot to the upside, bears aggression pulled price beneath the open, but before the candle close, bulls had the strength to move price from the bottom of the candle to the open.

So in essence it doesn’t show strength for either the bulls or bears, it shows a battle that was fought who at one point the bulls were winning (the top of the candle) and at another point the bears dominated (the bottom), but in the end both sides were evenly matched during the timeframe you selected for that candle (1 week here).

So if you get an uptrend then Dojis, it could mean price could retrace / begin to fall, or like I said above range / go sideways.

In a downtrend you get Dojis, same thing, the trend could start to reverse or slow down / move sideways.

Regardless, during that timeframe it was a period of indecision, neither side really took control or dominated.

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When you get a candle where the open and close are the same, and you either get a longer bottom wick / tail, or a longer top wick / tail, and the candle is wider / taller than average, there is a clear winner.

Bottoming tail = bullish

Tipping tail = bearish

If a bottoming tail coincides with other factors (eg bottoming tail happens at the same price as a prior low) it could signify an opportunity to go long / price looks to be ready to rally.

If a topping tail coincides with a prior important high, then price moves below the bottom of the Doji, it’s a good short opportunity.

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Now let’s say you get a bottoming tail in a strong downtrend, then the next candle takes the low of the Doji / moves beneath it, that is extremely bearish / when price overcomes bullish price action, its bearish.

When price falls below a topping tail Doji in an uptrend, that is very bearish / overcoming bullishness is bearish.

But be careful, ignore Dojis in random places, that don’t coincide with anything.

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Read up some material from Steve Nison. He is the godfather of candle sticks. He has a youtube and good books on this subject.

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Thank you ever so much for your wonderful and detailed response Vio, you truly are a wonderful human being, thank you ever so much for your kindness. You are definitely the most amazing person on planet earth, you have been extraordinary and my heart goes out to you. I truly hope you are having another successful and happy week.

I really appreciate what you said, in relation to, so if you get an uptrend then Dojis, it could mean price could retrace / begin to fall, or like i said above range / go sideways. In a downtrend you get Dojis, same thing, the trend could start to reverse or slow down / move sideways. Thank you ever so much for your kindness, that makes complete sense and is the first time i have ever managed to understand this, thank you from the bottom of my heart.

You also kindly said if a bottoming tail coincides with other factors (eg bottoming tail happens at the same price as a prior low) it could signify an opportunity to go long / price looks to be ready to rally. If a topping tail coincides with a prior important high, then price moves below the bottom of the Doji, it’s a good short opportunity. Thank you ever so much for mentioning this, it makes complete sense, thank you ever so much for your kindness.

I am very sorry to ask, i feel embarrassed and anxious to ask, i please have two follow-up questions, if you are please able to answer it would mean the world to me. When there is a green or red candlestick and the wick at the top of the candlestick and bottom is the same, what is this indicating please? If you kindly had any thoughts on this i would be forever grateful and i would be highly appreciative.

Regarding the Dojis, when the horizontal line is higher up the vertical line and the wick at the bottom is longer, what does this indicate please, as i know the Dojis can sometimes look slightly different please? If you kindly had any thoughts on this i would be forever thankful and it would mean the world to me.

Thank you ever so much for all your support Vio my heart goes out to you, definitely you have been a completely wonderful and amazing human being and i cannot thank you enough for your support. You are a outstanding person and i really appreciate your time. Sending you lots of good wishes Vio and i truly hope you continue to achieve massive success in the stock market and hope that you, family and friends, have a wonderful and happy life. With my every best wishes to you.

Do you mean 1 or 2?

Regardless it depends on location. 1 after a range is bullish - trade in the same direction as the candle. If price is extended and you get 1, price may stall or even reverse on the next candle. But again, it depends where this happens.

2 - momentum is slowing, you just need to watch price, as price could continue, or if the next candle moves price below the low of 2, then it’s possibly the start of a retracement. But again, depends on placement, and what happens after. if you get a 2, then a bearish candle, then a 1, obviously price is bullish. So it depends on location, confluences, patterns, price action really.

highly depends on location, but if you get a longer bottoming tail and a short or no topping tail, this is bullish, price should move up. Long topping tail and small or no bottoming tail means price is bearish.

If this happens in the middle of a trend, it’s to be ignored, if it happens at key areas, watch price, you could take some profit.

Topping tail in an uptrend can indicate a reversal or start of sideways movement.

Bottoming tail in downtrend can indicate reversal or start of sideways movement.

Hopefully, this helps. I don’t have much time to elaborate now. Can expand on this later if tyou want.

V.

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Thank you ever so much Vio, i cannot thank you enough for your support and for your extraordinary helpful response. You have touched my life in such a positive way and i will always be forever thankful for that. You are definitely the most amazing and kindest human being on planet earth. I truly hope that everything is going well for you and that you are having another successful week.

I really appreciate what you said in relation to 2 - momentum is slowing, you just need to watch price, as price could continue, or if the next candle moves price below the low of 2, then it’s possibly the start of a retracement. But again, depends on placement, and what happens after. If you get a 2, then a bearish candle, then a 1, obviously price is bullish. So it depends on location, confluences, patterns, price action really. Thank you ever so much for mentioning this, it made perfect sense, i really have considerable respect for you sharing this information, thank you so much.

I liked what you said in terms of topping tail in an uptrend can indicate a reversal or start of sideways movement. Bottoming tail in downtrend can indicate reversal or start of sideways movement. Thank you ever so much for taking the time to help me with this, that was so wonderful of you.

I am really sorry to ask and feel embarrassed to ask as i appreciate you will be very busy. I have kindly enclosed a small selection of candlesticks from the Enzc stock, i have kindly enclosed the image to the bottom of this message. Regarding the size of the body of the candlesticks, for instance the second candlestick on the image, if the red body is small does that mean the bearish strength is only small and may not move the price action much please? If you kindly had any thoughts on this i would be forever grateful and it really would mean the world to me.

Lastly the third red candlestick on the image, is not a topping tail as it has a wick at the top and bottom of the candlestick. Really sorry to ask about this i have not yet understood the candlesticks when there is a wick at the top and bottom and does not fit into a near category. Can i please kindly ask what this third candlestick the red bar with the wick at the top and bottom is showing please, with the red wick larger at the top, than the bottom of the candlestick please? If you kindly had any thoughts on this it would be highly appreciated and i would be immensely thankful.

Thank you ever so much for your kindness Vio, you truly are outstanding and i cannot put into words how thankful i am for your time, support and kindness. You truly are an immensely wonderful person and i really cannot thank you enough. I truly hope you can continue to generate massive wealth in the stock market and have lots of future success. Enjoy your evening. Sending you lots of good wishes and i truly hope you have a happy, healthy and amazing life for you, family and friends. With my every best wishes.

No. The body could be red, green, or a line, that’s not important. The big topping tail shows where price rallied to and then got smashed back down. It’s considered extremely bearish because price turned an extremely bullish candle into an extremely bearish candle.

Think about what the candle looked like when price was at the very top of the wick - it was a big green candle = extremely bullish = but also because it followed another big green candle, we’d say price was extended, so it’s actually a sign to watch the candle and watch price action as it can begin to stall or retrace at any time.

The 2nd candle developed like this:

1 - extremely bullish - but overextended because previous candle was a big green bar too - so it’s a big warning sign - expect stall or reversal

2 - incredibly bearish action not only erased the entire bullish action but then pushed back into the bulls prior won territory

3 - bulls didn’t have the power to fight anymore - just brought the price from the low of 2 a little higher = weak bulls = expect price to fall

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You need to interpret size and location of the body:

A big bearish candle with little to no tails on either end is bearish even extremely bearish depending on factors. But seeing a bullish candle erased (like in my first drawing : green candle, then red candle engolfing the green one) is even more bearish. Because price was pushed a long distance with massive force, and at one point bulls got tired (no more buying) and bears came in with full force.

You want to be able to understand candles and be able to combine candles ( 2 or 3 ) and also pull them apart (make 2 or 3 candles out of 1).

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Thank you ever so much for your fantastic and extraordinary helpful response Vio you are a true star. You are the most incredible and amazing human being on planet earth and i cannot say thank you enough for your kindness. You have touched my life in such a positive way and i will be forever grateful for your support. I truly hope that everything is going well for you and that you are enjoying the week ahead.

I really loved the image you provided of the various candlesticks and what they mean, interpreting size and location of the body. This is the first time i have fully understood the meanings of the candlesticks, you have been truly amazing and thank you from the bottom of my heart for helping me learn this.

I really appreciate what you said in relation to a big bearish candle with little to no tails on either end is bearish even extremely bearish depending on factors. But seeing a bullish candle erased (like in my first drawing : green candle, then red candle engolfing the green one) is even more bearish. Because price was pushed a long distance with massive force, and at one point bulls got tired (no more buying) and bears came in with full force. Thank you ever so much for your kindness mentioning this, you are truly the most loveliest and wonderful human on planet earth.

I am very sorry to ask and feel embarrassed and anxious to ask, i kindly have two more questions on my mind, if you could kindly help with these i would be forever grateful and thankful. From reviewing the screenshot i enclosed at the start of the thread of Enzc stock before the breakout, this broke out on a red Doji and from looking at your screenshot this is bearish. Can i please ask are Dojis regardless of the colour more likely to form a breakout if they are near a support level please as this appears to have happened with Enzc stock please? If you kindly had any thoughts on this i would be forever grateful and thankful it would mean the world to me.

Lastly the screenshot you provided showing the various candlesticks and what they meant from neutral, very bearish and extremely bearish was truly amazing, thank you again for sharing this. I please kindly wondered if you had a similar screenshot that explained in the same way regarding the bullish indicators please, such as neutral, very bullish and extremely bullish for instance please? If you kindly had any thoughts on this i would be immensely thankful and be highly appreciative.

I do apologise from the heart for all my questions, this is the first time i have fully understood this Vio and you have been truly amazing. The kindness and support you have shown me has touched my life in such a positive way and you are a truly phenomenal person. You are the most amazing person on planet earth. I truly hope you continue to have a very happy and enjoyable week ahead. Sending you lots of good wishes Vio and i truly hope that you continue to achieve great successes in the stock market, i hope you continue to grow and have a very wonderful and amazing life. You deserve every success. With my every best wishes.

Can you clarify this question, I don’t understand. Maybe show me a screenshot and point to the exact place you’re asking about.

I quickly made them in Paint.
For the bullish, it’s the exact same but opposite.
So flip the image upside down, then change the colours from red to green.

It’s exactly the same.